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Magna International Inc. (MG $71.43)
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XPeng Inc. American depositary shares each representing two Class A (XPEV $18.99)
Q: Good day to you all
I understand it s the early stages ,but would like to know your expert opinion on the joint venture Magna is doing with Xpeng to assemble their cars in Europe
Thanks a lot and best wishes for the Season
I understand it s the early stages ,but would like to know your expert opinion on the joint venture Magna is doing with Xpeng to assemble their cars in Europe
Thanks a lot and best wishes for the Season
5i Research Answer:
MG has been awarded a vehicle assembly program by XPEV, a Chinese EV maker. MG will assemble two fully electric XPEV models at its plant in Graz, Austria, for the European market. It is essentially a long-term contract manufacturing deal - similar to how MG assembles vehicles for other automakers. Much of the ultimate success will depend on XPEV's brand traction and its dealer network in Europe, and how pricing stacks up against other competitors. We think it is an interesting development, but it will take some time to filter through to the bottom line.